HEADLINES:  

The Indian tractor industry is faced with the challenges od moderation in growth rates and large capacity additions this year. Tractor volumes reduced in the last quarter, resulting in a volume growth in the region of 10-11 percent for full year of FY11.

Over a five year time period, the industry expects tractor volumes to grow at CAGR of 8-9 percent.

High interest rates and price hikes deterred the farmers from buying new tractors.

The industry showed tepid results , with fear of draught effecting consumer sentiments, as well as high base of last year, which saw record volume sales during festival season. Sales growth is however expected to recover in the current fiscal.


Demand from Southern states has shrunk rapidly over the course of last two quarters led by draught like conditions in Andhra Pradesh and Karnataka, apart from weak prices of cotton and spices.

Even western region reported lackluster performance with volumes declining by 10.9% .

The northern region, which accounts for over 35% of domestic tractor industry volumes, supported industry figures and posted a 14.1% YoY growth during 2010 to 2011.

  INDIAN tractor Industry AT A Glance IN 2012 - 2013

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